IMF prepared to increase aid to Moldova by $33 mln

CHISINAU, May 8 (RIA Novosti) - The International Monetary Fund (IMF) is prepared to increase its financial assistance to Moldova by $33 million, the head of the IMF mission in the impoverished ex-Soviet republic said Tuesday.

Thomas Richardson said the funds will be used to reduce poverty and assist economic growth in Moldova under the Poverty Reduction and Growth Facility (PRGF) developed by the IMF for low-income countries.

Richardson said the IMF Executive Board could make a relevant decision in June 2007.

Last year, the IMF disbursed a PRGF $167 mln loan to Moldova.

Richardson said the IMF loans are intended to help Moldova overcome the unexpected circumstances that emerged following import bans by Russia on Moldovan products.

The PRGF is the IMF's concessional facility for countries in the low income bracket. PRGF loans carry an annual interest rate of 0.5 percent and are repayable over 10 years with a 5.5-year grace period for principal payments.